Dynamic Capabilities, Organization Culture And Performance Of The State Bank Of Mauritius, Kenya

Abstract

The objective of this study is to establish what influence dynamic capabilities has on the performance of the State Bank of Mauritius Kenya Limited (SBM) as well as establish how the culture of this organization moderates on the relationship linking together dynamic capabilities and performance of the Bank. The banking sector is set up in a dynamic environment therefore to ensure performance is at zenith, there is need to adjust to the environment as fast as possible. The drivers of this ever-changing environment may be brought about by political, social, technological, economic as well as the legal factors. Dynamic capabilities of an organization are the intricate skills bundled with knowledge gathered over time that enables the organization to frame activities and adapt optimal resource utilization. In order to create and transform the operations in the organization, these capabilities are noteworthy for increased performance. . These capabilities facilitate an organization, as a strategic alternative, to adapt to the highly evolving environment by developing and adopting strategies that ensure a viable competitive edge. The organization's culture is said to be the inherent beliefs and values that cut across it. The culture includes its structure, processes, and attitudes of its employee's among others. This research seeks to establish whether the dynamic capabilities have an influence on a firm’s culture and in return, the effect they may have on its performance. The research was based on SBM bank Kenya, the subject of the case study. Data collection (Qualitative) was through an interview guide, which enabled in-depth responses to be harnessed. The data collected was presented in prose form. The study has established that SBM bank's performance is significantly influenced by its dynamic capabilities and culture. Similarly, the association of dynamic capabilities and performance of the bank is moderated by the culture of the organization.